<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q
(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

For the quarterly period ended   September 30, 2002

                                       OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from                        to
                                ---------------------    -----------------------

                        Commission file number: 333-59109

                                ABLE ENERGY, INC.
             (Exact name of registrant as specified in its charter)

         DELAWARE                                               22-3520840
(State or other jurisdiction of                             (I.R.S. employer
incorporation or organization)                             identification No.)

         198 GREEN POND ROAD
         ROCKAWAY, NJ                                               07866
(Address of principal executive offices)                          (Zip code)

Registrant's telephone number, including area code:     (973) 625-1012

                                 NOT APPLICABLE
              (Former name, former address and former fiscal year,
                         if changed since last report)

     Indicate by check X whether registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes [X] No [ ]

     As of November 6, 2002, 2,013,250 shares, $.001 Par value per share, of
Able Energy, Inc. were issued and outstanding.


                         ------------------------------

<PAGE>

                                TABLE OF CONTENTS
                                -----------------


                                                                       PAGE
                                                                       ----
PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS (UNAUDITED)

         Consolidated Balance Sheets as of June 30, 2002 and
            September 30, 2002                                            3 - 4

         Consolidated Statements of Income for the three
            months ended September 30, 2002 and September 30, 2001        5

         Consolidated Statement of Stockholders' Equity three months
            ended September 30, 2002                                      6

         Consolidated Statements of Cash Flows for the three months
            ended September 30, 2002 and 2001                             7

         Notes to Unaudited Financial Statements                          8 - 26

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

                           CONSOLIDATED BALANCE SHEET
                           --------------------------

                                     ASSETS
                                     ------
<TABLE>
<CAPTION>
                                                                                  SEPTEMBER            JUNE 30,
                                                                                     2002                2002
                                                                                 (UNAUDITED)           (AUDITED)
                                                                                 -----------          -----------
<S>                                                                                <C>                  <C>
CURRENT ASSETS:
    Cash                                                                           $   680,016          $   258,560
    Accounts Receivable (Less Allowance for Doubtful
       Accounts of ($242,358)                                                        2,120,544            1,933,526
    Inventory                                                                          425,191              405,424
    Notes Receivable - Current Portion                                                  34,428               32,756
    Miscellaneous Receivables                                                           68,903              113,905
    Prepaid Expenses                                                                   275,699              228,839
    Prepaid Expense - Income Taxes                                                       4,796                2,733
    Deferred Income Tax                                                                 65,703               65,703
    Due From Officer                                                                    44,690               44,690
                                                                                   -----------          -----------
        Total Current Assets                                                         3,719,970            3,086,136
                                                                                   -----------          -----------

PROPERTY AND EQUIPMENT:
    Land                                                                               451,925              451,925
    Buildings                                                                        1,096,046            1,096,046
    Trucks                                                                           3,069,469            3,037,192
    Fuel Tanks                                                                       1,255,994            1,190,153
    Machinery and Equipment                                                            576,123              576,123
    Leasehold Improvements                                                             575,399              578,792
    Cylinders                                                                          732,266              731,692
    Office Furniture and Equipment                                                     200,640              200,640
    Website Development Costs                                                        2,200,511            2,200,511
                                                                                   -----------          -----------
                                                                                    10,158,373           10,063,074
    Less: Accumulated Depreciation and Amortization                                  3,751,070            3,461,342
                                                                                   -----------          -----------
        NET PROPERTY AND EQUIPMENT                                                   6,407,303            6,601,732
                                                                                   -----------          -----------

OTHER ASSETS:
    Deposits                                                                           107,320               70,570
    Notes Receivable - Less Current Portion                                            214,956              216,628
    Customer List, Less Accumulated Amortization of  ($188,122) at
        September 30, 2002, and June 30, 2002                                          422,728              422,728
    Covenant Not to Compete, Less Accumulated Amortization of
         ($61,667) at September 30, 2002 and ($56,667) at June 30, 2002                 38,333               43,333
    Development Costs - Franchising, Less accumulated
           Amortization of ($11,489) at September 30, 2002 and ($9,191)
           at June 30, 2002                                                             34,466               36,764
                                                                                   -----------          -----------
         TOTAL OTHER ASSETS                                                            817,803              790,023
                                                                                   -----------          -----------

        TOTAL ASSETS                                                               $10,945,076          $10,477,891
                                                                                   ===========          ===========
</TABLE>

                             See Accompanying Notes
                                        3
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

                       CONSOLIDATED BALANCE SHEET (Cont'd)
                       -----------------------------------

                       LIABILITIES & STOCKHOLDERS' EQUITY
                       ----------------------------------

<TABLE>
<CAPTION>
                                                                                SEPTEMBER 30,           JUNE 30,
                                                                                    2002                  2002
                                                                                 (UNAUDITED)            (AUDITED)
                                                                                 -----------            ---------
<S>                                                                                <C>                  <C>
CURRENT LIABILITIES:
    Accounts Payable                                                               $ 1,491,963          $ 1,159,341
    Note Payable - Bank                                                              1,270,000            1,470,000
    Notes Payable - Other                                                            1,250,000              500,000
    Current Portion of Long-Term Debt                                                  632,522              584,384
    Accrued Expenses                                                                   223,385              309,363
    Accrued Taxes                                                                       28,565               24,673
    Customer Pre-Purchase Payments                                                   1,226,056              880,111
    Customer Credit Balances                                                           567,447              548,336
    Escrow Deposits                                                                     16,952               28,472
    Note Payable - Officer                                                              55,000               55,000
                                                                                   -----------          -----------
        Total Current Liabilities                                                    6,761,890            5,559,680

DEFERRED INCOME                                                                         79,679               79,679
DEFERRED INCOME TAXES                                                                   57,832               54,712
LONG TERM DEBT: less current portion                                                 1,490,362            1,522,680
                                                                                   -----------          -----------
        TOTAL LIABILITIES                                                            8,389,763            7,216,751
                                                                                   -----------          -----------

STOCKHOLDERS' EQUITY:
    Preferred Stock
    Authorized 10,000,000 Shares Par Value $.001 per share
     Issued - None
    Common Stock
    Authorized 10,000,000 Par Value $.001 per share Issued
      and Outstanding 2,013,250 Shares September 30, 2002, and
           2,007,250 at June 30, 2002                                                    2,014                2,008
    Paid in Surplus                                                                  5,711,224            5,687,230
    Retained Earnings (Deficit)                                                     (3,157,925)          (2,428,098)
                                                                                   -----------          -----------
        TOTAL STOCKHOLDERS' EQUITY                                                   2,555,313            3,261,140
                                                                                   -----------          -----------

        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                 $10,945,076          $10,477,891
                                                                                   ===========          ===========
</TABLE>


                             See Accompanying Notes
                                        4

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                                THREE MONTHS SEPTEMBER 30,
                                                                                --------------------------

                                                                                2002                  2001
                                                                                ----                  ----
<S>                                                                          <C>                   <C>
NET SALES                                                                    $6,233,339            $5,267,297

COST OF SALES                                                                 5,402,825             4,720,046
                                                                             ----------            ----------

   GROSS PROFIT                                                                 830,514               547,251
                                                                             ----------            ----------

EXPENSES
   Selling, General and Administrative Expenses                               1,211,527             1,214,557
   Depreciation and Amortization Expense                                        297,406               298,221
                                                                             ----------            ----------
      TOTAL EXPENSES                                                          1,508,933             1,512,778
                                                                             ----------            ----------

   (LOSS) FROM OPERATIONS                                                      (678,419)             (965,527)
                                                                             ----------            ----------

OTHER INCOME (EXPENSES):
   Interest and Other Income                                                     32,835                84,680
   Interest Expense                                                            (81,123)              (71,238)
                                                                             ----------            ----------
      TOTAL OTHER INCOME (EXPENSES)                                            (48,288)                13,442
                                                                             ----------            ----------

   (LOSS) BEFORE PROVISION FOR INCOME TAXES                                    (726,707)             (952,085)

PROVISION (REDUCTION) FOR INCOME TAXES                                            3,120               (1,075)
                                                                             ----------            ----------

   NET (LOSS)                                                                $ (729,827)           $ (951,010)
                                                                             ==========            ==========

BASIC (LOSS) PER COMMON SHARE                                                 $    (.36)            $    (.48)
                                                                              =========             =========

DILUTED (LOSS) PER COMMON SHARE                                               $    (.36)            $    (.48)
                                                                              =========             =========

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
   OUTSTANDING                                                                2,003,831             2,000,298
                                                                              =========             =========

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING,
    ASSUMING DILUTION                                                         2,003,831             2,000,298
                                                                              =========             =========
</TABLE>


                             See Accompanying Notes
                                        5

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

                      THREE MONTHS ENDED SEPTEMBER 30, 2002

                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                  COMMON STOCK
                                 .001 PAR VALUE
                                 --------------
                                                                                    ADDITIONAL        TOTAL
                                                                    PAID-IN          RETAINED      STOCKHOLDERS'
                                    SHARES         AMOUNT           SURPLUS          EARNINGS         EQUITY
                                    ------         ------           -------          --------         ------

<S>                               <C>              <C>             <C>             <C>              <C>
Balance - July 1, 2002            2,007,250        $2,008          $5,687,230      $(2,428,098)     $3,261,140

Shares Issued                         6,000             6              23,994                           24,000

Net Loss                                                                              (729,827)       (729,827)
                                  ---------        ------          ----------      -----------      ----------

Balance - September 30, 2002      2,013,250        $2,014          $5,711,224      $(3,157,925)      $2,555,313
                                  =========        ======          ==========      ===========       ==========
</TABLE>










                             See Accompanying Notes
                                        6

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                               THREE MONTHS ENDED SEPTEMBER 30
                                                                                                UNAUDITED
                                                                                                ---------
                                                                                2002                      2001
                                                                                ----                      ----
<S>                                                                          <C>                      <C>
CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------
   Net  (Loss) - Continuing Operations                                       $(729,827)               $ (951,010)
   Adjustments to Reconcile Net Income to Cash
   used by Operating Activities:
      Depreciation and Amortization                                            297,406                   298,221
      Directors' Fees                                                           24,000                         -
      (Increase) Decrease in:
         Accounts Receivable                                                 (187,018)                  (230,275)
         Inventory                                                            (19,767)                  (252,425)
         Prepaid Expenses                                                     (48,923)                    (4,794)
         Deposits                                                                    -                   (11,000)
         Loss on Disposition of Assets                                             535                         -
      Increase (Decrease) in:
         Accounts Payable                                                      332,622                   (99,495)
         Accrued Expenses                                                      (82,086)                 (163,577)
         Customer Advance Payments                                             345,945                   706,695
         Customer Credit Balances                                               19,111                   268,213
         Deferred Income Taxes                                                   3,120                   (1,075)
         Escrow Deposits                                                      (11,520)                    52,181
                                                                              --------                 ---------
           NET CASH (USED) PROVIDED BY OPERATING ACTIVITIES                    (56,402)                 (388,341)
                                                                              --------                 ---------

CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------
   Purchase of Property and Equipment                                         (96,214)                   (25,736)
   Website Development Costs                                                         -                    25,000
    Note and Other Receivables                                                  45,002                     8,882
    Deposits                                                                  (36,750)                         -
                                                                              --------                 ---------
          NET CASH (USED) PROVIDED  BY INVESTING ACTIVITIES                   (87,962)                     8,146
                                                                              --------                 ---------

CASH FLOWS FROM FINANCING ACTIVITIES
------------------------------------
   (Decrease) in Notes Payable - Bank                                        (200,000)                  (449,720)
   Increase in Notes Payable - Other                                           750,000                         -
   Decrease in Long-Term Debt                                                (125,055)                  (139,026)
   Increase in Long-Term Debt                                                  140,875                         -
   Sale of Common Stock                                                         -                          4,063
                                                                              --------                 ---------
           NET CASH (USED) PROVIDED  BY FINANCING ACTIVITIES                   565,820                  (584,683)
                                                                              --------                 ---------

NET INCREASE (DECREASE) IN CASH                                                421,456                  (964,878)
Cash - Beginning of Period                                                     258,560                 1,489,018
                                                                              --------                 ---------
Cash - End of Period                                                         $ 680,016                $  524,140
                                                                             =========                ==========

The Company had Interest Cash Expenditures of:                               $  87,136                $   71,638
The Company had Tax Cash Expenditures of:                                    $   4,971                $        -
</TABLE>

                             See Accompanying Notes
                                        7
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
--------------------------------------------------

          PRINCIPLES OF CONSOLIDATION
          The consolidated financial statements include the accounts of Able
          Energy, Inc. and its subsidiaries. The minority interest of 1% in Able
          Propane, LLC is immaterial and has not been shown separately. All
          material inter-company balances and transactions were eliminated in
          consolidation.

          MAJORITY OWNERSHIP
          The Company is the majority owner, owning 70.6% of the issued shares
          of a subsidiary, PriceEnergy.Com, Inc. in which their capital
          investment is $25,000. The subsidiary has established a Web Site for
          the sale of products through a network of suppliers originally on the
          East Coast of the United States. The Web Site became active in October
          2000 (See Notes 8 and 13)

          MINORITY INTEREST
          The minority interest in PriceEnergy.Com, Inc. is a deficit and, in
          accordance with Accounting Research Bulletin No. 51, subsidiary losses
          should not be charged against the minority interest to the extent of
          reducing it to a negative amount. As such, the losses have been
          charged against the Company, the majority owner. The loss for three
          months ended September 30, 2002 is $197,695 (See Notes 8 and 13).

          The consolidated interim financial statements included herein have
          been prepared by the Company, without audit, pursuant to the rules and
          regulations of the Securities and Exchange Commission. Certain
          information and footnote disclosures normally included in financial
          statements prepared in accordance with generally accepted accounting
          principles have been condensed or omitted pursuant to such rules and
          regulations, although the Company believes that the disclosures are
          adequate to make the information presented not misleading.

          These statements reflect all adjustments, consisting of normal
          recurring adjustments which, in the opinion of management, are
          necessary for fair presentation of the information contained therein.
          It is suggested that these consolidated financial statements be read
          in conjunction with the financial statements and notes thereto
          included in the Company's annual report for the year ended June 30,
          2002. The Company follows the same accounting policies in preparation
          of interim reports.





                                        8

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
-----------------------------------------------------------

          Results of operations for the interim periods are not indicative of
          annual results.

          NATURE OF OPERATIONS
          Able Oil Company, Able Melbourne and Able Energy New York, Inc. are
          full service oil companies that market and distribute home heating
          oil, diesel fuel and kerosene to residential and commercial customers
          operating in the northern New Jersey, Melbourne, Florida, and
          Warrensburg, New York respectively. Able Propane, installs propane
          tanks which it owns and sells propane for heating and cooking, along
          with other residential and commercial uses.

          The Company's operations are subject to seasonal fluctuations with a
          majority of the Company's business occurring in the late fall and
          winter months. Approximately 70% of the Company's revenues are earned
          and received from October through March, and the overwhelming majority
          of such revenues are derived from the sale of HVAC products and
          services and home heating fuel. However, the seasonality of the
          Company's business is offset, in part, by the increase in revenues
          from the sale of diesel and gasoline fuels during the spring and
          summer months due to the increased use of automobiles and construction
          apparatus.

          INVENTORIES
          Inventories are valued at the lower of cost (first in, first out
          method) or market.

          PROPERTY AND EQUIPMENT
          Property and equipment are stated at cost less accumulated
          depreciation. Depreciation is provided by using the straight-line
          method based upon the estimated useful lives of the assets (5 to 40
          years). Depreciation expense for the three months ended September 30,
          2002 and 2001 amounted to $180,083 and $170,664, respectively.

          For income tax basis, depreciation is calculated by a combination of
          the straight-line and modified accelerated cost recovery systems
          established by the Tax Reform Act of 1986.

          Expenditures for maintenance and repairs are charged to expense as
          incurred whereas expenditures for renewals and betterments are
          capitalized.

          The cost and related accumulated depreciation of assets sold or
          otherwise disposed of during the period are removed from the accounts.
          Any gain or loss is reflected in the year of disposal.


                                        9

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
-----------------------------------------------------------

          WEB SITE DEVELOPMENT COSTS
          Costs of $2,200,511 incurred in the developmental stage for computer
          hardware and software have been capitalized in accordance with
          accounting pronouncement SOP98-1. The costs are included in Property
          and Equipment and will be amortized on a straight line basis during
          the estimated useful life, 5 years. Operations commenced in October
          2000. Amortization for the three months ended September 30, 2002 and
          2001 amounted to $110,025 and $106,564, respectively.

          INTANGIBLE ASSETS
          Intangibles are stated at cost and amortized as follows: Customer
          Lists of $571,000 and Covenant Not To Compete of $183,567 related to
          the Connell's Fuel Oil Company acquisition on October 28, 1996, by
          Able Oil Company are being amortized over a straight-line period of 15
          and 5 years, respectively. The current period amortization also
          includes a customer list of $39,850 and Covenant Not To Compete of
          $100,000 relating to the acquisition from B & B Fuels on August 27,
          1999, is being amortized over a straight-line period of 10 and 5
          years, respectively. The amortization for the three months ended
          September 30, 2002 and 2001 are $5,000 and $20,993, respectively. The
          Covenant Not to Compete with Connell's Fuel Oil Company ended in
          October 2001, and was fully amortized.

          In July 2001, the Financial Accounting Standards Board ("FASB") issued
          Statement of Financial Accounting Standards No. 142, "Goodwill and
          Other Intangible Assets" ("SFAS 142"). SFAS 142 requires goodwill and
          other intangible assets to be tested for impairment under certain
          circumstances, and written off when impaired, rather than being
          amortized as previous standards required, as such, effective July 1,
          2001, the Customer List will no longer be amortized for financial
          statement purposes.

          For income tax basis, the Customer Lists and the Covenant Not To
          Compete are being amortized over a straight-line method of 15 years as
          per the Tax Reform Act of 1993.

          USE OF ESTIMATES
          The preparation of financial statements in conformity with generally
          accepted accounting principles requires management to make estimates
          and assumptions that affect the amounts reported in the financial
          statements and accompanying notes. Although these estimates are based
          on management's knowledge of current events and actions it may
          undertake in the future, they may ultimately differ from actual
          results.

                                       10
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
-----------------------------------------------------------

          INCOME TAXES
          Effective January 1, 1997, all the subsidiaries, which were
          S-Corporations, terminated their S-Corporation elections. The
          subsidiaries are filing a consolidated tax return with Able Energy,
          Inc.

          Effective January 1, 1997, the Company has elected to provide for
          income taxes based on the provisions of Financial Accounting Standards
          Board ("FASB") Statement of Financial Accounting Standards ("SFAS")
          No. 109, "Accounting for Income Taxes", which requires recognition of
          deferred tax assets and liabilities for the expected future tax
          consequences of events that have been included in the financial
          statements and tax returns in different years. Under this method,
          deferred income tax assets and liabilities are determined based on the
          difference between the financial statement and tax bases of assets and
          liabilities using enacted tax rates in effect for the year in which
          the differences are expected to reverse.

          CONCENTRATIONS OF CREDIT RISK
          The Company performs on-going credit evaluations of its customers'
          financial conditions and requires no collateral from its customers.

          Financial instruments which potentially subject the Company to
          concentrations of credit risk consists of checking and savings
          accounts with several financial institutions in excess of insured
          limits. The excess above insured limits is approximately $470,147. The
          Company does not anticipate non-performance by the financial
          institutions.

          CASH
          For the purpose of the statement of cash flows, cash is defined as
          balances held in corporate checking accounts and money market
          accounts.

          ADVERTISING EXPENSE
          Advertising costs are expensed at the time the advertisement appears
          in various publications and other media. The expense was $133,788 and
          $128,265 for the three months ended September 30, 2002 and 2001,
          respectively.

          FAIR VALUE OF FINANCIAL INSTRUMENTS
          Carrying amounts of certain of the Company's financial instruments,
          including cash and cash equivalents, accrued compensation, and other
          accrued liabilities, approximate fair value because of their short
          maturities.


                                       11

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
-----------------------------------------------------------

          REVENUE RECOGNITION
          Sales of fuel and heating equipment are recognized at the time of
          delivery to the customer, and sales of equipment are recognized at the
          time of installation. Revenue from repairs and maintenance service is
          recognized upon completion of the service. Payments received from
          customers for heating equipment service contracts are deferred and
          amortized into income over the term of the respective service
          contracts, on a straight line basis, which generally do not exceed one
          year.

          COMPUTATION OF NET INCOME (LOSS) PER SHARE
          Basic net income (loss) per share is computed using the
          weighted-average number of common shares outstanding during the
          period. Diluted net income per share is computed using the
          weighted-average number of common and dilutive potential common shares
          outstanding during the period. Diluted net loss per share is computed
          using the weighted-average number of common shares and excludes
          dilutive potential common shares outstanding, as their effect is
          anti-dilutive. Dilutive potential common shares primarily consist of
          employee stock options.

          IMPAIRMENT OF LONG-LIVED ASSETS
          Long-lived assets to be held and used are reviewed for impairment
          whenever events or changes in circumstances indicate that the carrying
          amount of such assets may not be recoverable. Measurement of an
          impairment loss for long-lived assets that management expects to hold
          and use is based on the fair value of the asset. Long-lived assets to
          be disposed of are reported at the lower of carrying amount or fair
          value less costs to sell.

          RECENT ACCOUNTING PRONOUNCEMENTS
          In June 2001, FASB approved two new pronouncements: SFAS No. 141,
          "Business Combinations", and SFAS No. 142, "Goodwill and Other
          Intangible Assets". SFAS No. 141 applies to all business combinations
          with a closing date after June 30, 2001. This Statement eliminates the
          pooling-of-interests method of accounting and further clarifies the
          criteria for recognition of intangible assets separately from
          goodwill.

          SFAS No. 142 eliminates the amortization of goodwill and
          indefinite-lived intangible assets and initiates an annual review for
          impairment. Identifiable intangible assets with a determinable useful
          life will continue to be amortized. The amortization provisions apply
          to goodwill and other intangible assets acquired after June 30, 2001.
          Goodwill and other intangible assets acquired prior to June 30, 2001
          will be affected upon adoption. The Company has adopted SFAS No. 142
          effective July 1, 2001, which will require the Company to cease
          amortization of its remaining net customer lists balance and to
          perform an impairment test of its existing customer lists and any
          other intangible assets based on a fair value concept.

                                       12

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
-----------------------------------------------------------

          RECENT ACCOUNTING PRONOUNCEMENTS (CONT'D)
          The Company has reviewed the provisions of these Statements. It is
          management's assessment that customer lists impairment will not result
          upon adoption. As of June 30, 2001, the Company has net unamortized
          customer lists of $422,728. Amortization expense of the customer list
          was $20,125 for the six month short year ended June 30, 2001 and
          $42,052 for the full year ended December 31, 2000.

NOTE 2  NOTES RECEIVABLE
------------------------

     A.   The Company has a Receivable from Able Montgomery, Inc. and Andrew W.
          Schmidt related to the sale of Able Montgomery, Inc. to Schmidt, and
          truck financed by Able Energy, Inc. No payments of principal or
          interest had been received for more than one year. A new note was
          drawn dated June 15, 2000 for $170,000, including the prior balance,
          plus accrued interest. The Note bears interest at 9.5% per annum and
          payments commence October 1, 2000. The payments will be monthly in
          varying amount each year with a final payment of $55,981.07 due
          September 1, 2010. No payments were received in the year ended
          December 31, 2000. In February 2001, two (2) payments were received in
          the amount $2,691.66, interest only. In September 2001, $15,124.97 was
          received covering payments from December 2000 through October 2001,
          representing interest of $14,804.13 and principal of $320.84. No
          payments have been received since October 2001.

          The note is secured by a pledge and security agreement and stock
          purchase agreement (Stock of Able Montgomery, Inc.), dated December
          31, 1998, and the assets of Andrew W. Schmidt with the note dated June
          15, 2000. The income on the sale of the company in December 1998 and
          the accrued interest on the drawing of the new note are shown as
          deferred income to be realized on collection of the notes.


     Maturities of the Note Receivable are as follows:

              For the 12 Months Ending
                     September 30,                       Principal Amount
                     -------------                       ----------------
                       2003                                  $  13,023
                       2004                                      9,680
                       2005                                     12,577
                       2006                                     12,811
                       2007                                     14,082
                       Balance                                 107,183
                                                              --------
                               Total                          $169,356
                                                              ========

                                       13
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

     B.   Able Oil Company has three (3) Notes Receivable for the sale of oil
          delivery trucks to independent drivers who also deliver oil for the
          Company. The Notes bear interest at the rate of 12% per annum. Two
          notes began December 1998 and one began February 1999. The Notes are
          payable eight (8) months per year September through April, the oil
          delivery season.

          Maturities of these Notes Receivable are as follows:

              For the 12 Months Ending
                     September 30,                       Principal Amount
                     -------------                       ----------------

                         2003                                 $ 21,405
                         2004                                   23,803
                         2005                                   18,648
                         2006                                   11,013
                         2007                                    5,159
                                                              --------
                              Total                           $ 80,028
                                                              ========

NOTE 3  INVENTORIES
-------------------

                ITEMS                           SEPTEMBER 30,        JUNE 30,
                -----                               2002               2002
                                                    ----               ----

                Heating Oil                     $ 124,384          $ 141,114
                Diesel Fuel                        14,465             21,642
                Kerosene                            5,229              6,220
                Propane                             6,172             12,343
                Parts and Supplies                274,941            224,105
                                                ---------          ---------
                     Total                      $ 425,191          $ 405,424
                                                =========          =========

NOTE 4  NOTES PAYABLE BANK
--------------------------

          On October 22, 2001, the Company and its subsidiaries, either as
          Borrower or Guarantor, entered into a loan and security Agreement with
          Fleet National Bank. The bank is providing the following credit
          facility.

          A borrowing base of 75% of Eligible Accounts Receivable, as defined in
          the Agreement, plus $500,000 against the value of the Company's
          customer list, for a total amount of $1,500,000. The revolving credit
          may also be used for Letters of Credit, with the lender's approval.

                                       14
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 4  NOTES PAYABLE BANK (CONT'D)
-----------------------------------

          The Letters of Credit will have an annual fee of 1.25% of the face
          value of each Letter of Credit. The applicable interest rate on the
          revolving credit advances will be the bank's prime rate or Libor
          interest rate, plus 2.75%. Interest is to be paid on the amount
          advanced on the last day of each month.

          As security for the performance of this Agreement, the other Loan
          Documents and the payment of the Liabilities, each Borrower and
          Guarantor grants, pledges and assigns to Lender a security interest in
          all assets of such Borrower or Guarantor, whether now owned or
          hereafter acquired including, without limitation, (a) all Accounts,
          Goods, Chattel Paper, Equipment, Documents, Deposits, Instruments,
          General Intangibles and Payment Intangibles (including, but not
          limited to, any and all interests in trademarks, service marks,
          patents, licenses, permits, and copyrights), (b) all inventory of
          Borrowers, if any, held by any Borrowers for sale or lease or to be
          furnished under contracts of service, (c) all Books and Records, (d)
          any Account maintained by any Borrower with Lender and all cash held
          therein, and (e) all proceeds and products of the foregoing, including
          casualty insurance thereon (collectively, the "Collateral").

          The Agreement provides for covenants as follows:

          A.   Use of proceeds only for Working Capital, Letters of Credit and
               for acquisitions with Lender's prior written consent.
          B.   Financial information to be furnished either annually, quarterly
               or monthly.
          C.   Financial covenants to be tested as of the end of each fiscal
               quarter.
          D.   Limitations on loans and investments.
          E.   Compliance with laws and environmental matters.
          F.   Limitations on Borrowing.
          G.   Can not declare or pay any dividends.

          All of the above and other items as per article VI of the Agreement.
          The Agreement has a current expiration date of November 30, 2002. We
          have been informed by management that Fleet Bank has informed them the
          bank will not renew the credit facility upon expiration of the
          Agreement which is November 30, 2002. Management has informed us they
          are currently in discussion for a new credit facility.

          The Agreement with Able Oil Company and PNC Bank, dated August 11,
          1999, was amended July 14, 2002. The term was extended from June 30,
          2001 to September 29, 2001. The loan was paid in full effective
          September 29, 2001. The banking relation was terminated and all
          collateral was being released by PNC Bank.

                                       15

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 5  NOTES PAYABLE
---------------------

     A.   The Company has borrowed $500,000 from an unrelated individual. The
          Note is dated June 26, 2001 with interest at 12% per annum. The
          interest will be paid monthly at $5,000 per month commencing on August
          1, 2001. The Note will mature on June 26, 2002 unless the borrower
          (the Company), at its option, elects to extend the maturity date to
          December 26, 2002. The Company has exercised its option and has
          extended the Note to December 26, 2002. The Note may be prepaid in
          whole or part from time-to-time without penalty. No principal payments
          have been made on the Note. At the maturity date, a final payment of
          the unpaid principal and interest shall be due and payable. In
          connection with this Note, the Company has issued the lender warrants
          to purchase 40,000 shares of its common stock at $4 per share. The
          warrants vest immediately and must be exercised no later than June 26,
          2004. The warrants have not been registered under the Securities Act
          of 1933.

     B.   The Company has borrowed $750,000 from an unrelated company. The
          mortgage and note are dated September 13, 2002. The term of the note
          is for one (1) year. Payments of interest only on the outstanding
          principal balance shall be paid monthly at a rate of 10%. The first
          payment will be due on November 1, 2002 and on the first day of each
          month thereafter until October 1, 2003, when the Note shall mature and
          all principal and accrued interest shall be due and payable in full.

          Prepayment Penalty - in the event borrower makes a voluntary principal
          payment during the term of this note, borrower shall pay to the lender
          a premium equal to three (3) monthly payments of interest on the note.
          The note is collateralized by a mortgage dated September 13, 2002 from
          Able Energy Terminal, LLC, a wholly owned subsidiary, which is a
          second mortgage on the property at 344 Route 46, Rockaway, NJ and also
          by all leases and rents related to the property. The lender has been
          issued a stock purchase warrant for 100,000 shares at $4 per share.
          The warrant has not been registered under the Securities Act of 1933.
          The Company has granted the holder piggy-back registration rights for
          the Common Stock underlying the warrant on its next registration
          statement. This warrant does not entitle the holder to any of the
          rights of a stockholder of the Company. Unless previously exercised,
          the warrants will expire on September 13, 2004.

NOTE 6  LONG-TERM DEBT
----------------------

          Mortgage note payable dated, August 27, 1999, related to the purchase
          of B & B Fuels facility and equipment. The total note was $145,000.
          The note is payable in the monthly amount of principal and interest of
          $1,721.18 with and interest rate of 7.5% per annum. The initial
          payment was made on September 27, 1999, and continues monthly until
          August 27, 2009 which is the final payment. The note is secured by a
          mortgage made by Able Energy New York, Inc. on property at 2 and 4
          Green Terrace and 4 Horicon Avenue, Town of Warrensburg, Warren
          County, New York. The balance due on this Note at September 30, 2002
          was $111,194.

                                       16
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 6  LONG-TERM DEBT (CONT'D)
-------------------------------

          Mortgage note payable dated, August 31, 1999, related to the purchase
          of the facility and equipment in Rockaway, New Jersey by Able Energy
          Terminal, LLC ("Terminal"). The note is in the amount of $650,000.

          Pursuant to Section 4.4 of the Agreement of Sale to purchase the
          Terminal, , the Principal Sum of the $650,000 Note shall be reduced by
          an amount equal to one-half of all sums expended by Borrower on the
          investigation and remediation of the property provided, however, that
          the amount of said reduction shall not exceed $250,000 (the
          "Remediation Amount").

          The "Principal Sum: Less the "Remediation Amount" shall be an amount
          equal to $400,000 (the "Reduced Principal Sum"). The Reduced Principal
          Sum shall bear interest from the date hereof at the rate of 8.25% per
          annum. Any portion of the Remediation Amount not utilized in the
          investigation and remediation of the property shall not begin to
          accrue interest until such time that (i) a "No Further Action Letter"
          is obtained from the Department of Environmental Protection and (ii)
          an outstanding lawsuit concerning the property is resolved through
          settlement or litigation (subject to no further appeals). All payments
          on this Note shall be applied first to the payment of interest, with
          any balance to the payment to reduction of the reduced Principal Sum.

          Based upon an amendment, dated November 5, 2001, and commencing with
          interest due December 1, 2001, interest will be paid at the rate of
          8.25% on the principal sum of $650,000. Only interest is required to
          be paid and the principal is due on July 31, 2004 (See Note 10).

          The Note is collateralized by the property and equipment purchased and
          assignment of the leases. The balance due on this Note at September
          30, 2002 was $650,000.






                                       17

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 7  INCOME TAXES
--------------------

          Effective January 1, 1997, the Company adopted Statement of Financial
          Accounting Standards No. 109, Accounting for Income Taxes.

          The differences between the statutory Federal Income Tax and Income
          Taxes Continuing Operation is accounted for as follows:

                                                               2002
                                                               ----
                                                      AMOUNT          PERCENT
                                                      ------          -------

     Statutory Federal Income Tax                     $ 2,175          15.0%
     State Income Tax                                     945           6.5
                                                      -------          ----

     Income Taxes                                     $ 3,120          21.5%
                                                      =======          ====

     Income Taxes consist of:
      Current                                         $     -
      Deferred                                          3,120
                                                      -------
         Total                                        $ 3,120
                                                      =======

                                                              2001
                                                              ----
                                                                     PERCENT OF
                                                                      PRETAX
                                                      AMOUNT          INCOME
                                                      ------          ------

     Statutory Federal Income Tax                     $  (750)         15.0%
     State Income Tax                                    (325)          6.5
                                                      -------          ----

     Income Taxes                                     $(1,075)         21.5%
                                                      =======          ====

     Income Taxes consists of:
     Current                                          $     -
     Deferred                                          (1,075)
                                                      -------

          Total                                       $(1,075)
                                                      =======

                                       18
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 7  INCOME TAXES (CONT'D)
-----------------------------

          The types of temporary differences between the tax bases of assets and
          liabilities and their financial reporting amounts that give rise to a
          significant portion of the deferred tax liability and deferred tax
          asset and their approximate tax effects are as follows at:

                                                      SEPTEMBER 30, 2002
                                                      ------------------
                                                   TEMPORARY           TAX
                                                  DIFFERENCE          EFFECT
                                                  ----------          ------

     Depreciation and Amortization                 $(183,954)         $(57,832)
     Allowance for Doubtful Accounts                 242,358            61,668
     Gain on Sale of Subsidiary                       18,766             4,035

                                                          JUNE 30, 2002
                                                          -------------
                                                   TEMPORARY           TAX
                                                  DIFFERENCE          EFFECT
                                                  ----------          ------

     Depreciation and Amortization                 $(169,441)         $(54,712)
     Allowance for Doubtful Accounts                 242,358            61,668
     Gain on Sale of Subsidiary                       18,766             4,035

          Able Energy, Inc., et al, open years are December 31, 1999, 2000 and
          June 30, 2001 and 2002. The Company has a net operating loss
          carryforward of approximately $2,730,000. The net operating loss
          expires between June 30, 2019 and 2021.

          These carryforward losses are available to offset future taxable
          income, if any. The Company's utilization of this carryforward against
          future taxable income is subject to the Company having profitable
          operations or sale of Company assets which create taxable income. At
          this time, the Company believes that a full valuation allowance should
          be provided. The component of the deferred tax asset as of September
          30, 2002 are as follows:

           Net Operating Loss Carryforward - Tax Effect              $928,200
           Valuation Allowance                                       (928,200)
                                                                     --------
           Net Deferred Tax based upon Net
             Operating Loss Carryforward                             $  -0-
                                                                     ========

                                       19
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 8   NOTE RECEIVABLE - SUBSIDIARY
-------------------------------------

          The Company has a Note Receivable from PriceEnergy.Com, Inc. for
          advances made in the development of the Website, including hardware
          and software costs. All of PriceEnergy.Com, Inc.'s assets are pledged
          as collateral to Able Energy, Inc. The amount of the note is
          $1,350,000 dated November 1, 2000 with interest at 8% per annum
          payable quarterly. Principal payments to begin two years after the
          date of the Note, November 1, 2002. Interest, in the amount of $27,000
          has been accrued for the quarter ended September 30, 2002. Unpaid
          accrued interest due through September 30, 2002 is $207,000. The Note,
          accrued interest and interest expense have been eliminated in the
          consolidated financial statements (See Notes 1 and 13). Able Oil
          Company has a Note Receivable dated September 30, 2002 from
          PriceEnergy.Com, Inc. in the amount of $1,510,372.73, with interest at
          8% per annum, to be paid quarterly. Principal payments to begin one
          year after date of Note, October 1, 2003, and continue monthly
          thereafter. The Note is the result of the transference of the unpaid
          accounts receivable which resulted from the sale of heating oil
          through PriceEnergy.Com, Inc. Able Oil Company has a second position
          as collateral in all of the assets of PriceEnergy.Com, Inc. to Able
          Energy, Inc. The note receivable has been eliminated in consolidation
          against the note payable on PriceEnergy.Com, Inc.

NOTE 9   PROFIT SHARING PLAN
----------------------------

          Effective January 1, 1997, Able Oil Company established a Qualified
          Profit Sharing Plan under Internal Revenue Code Section 401-K. The
          Company matches 25% of qualified employee contributions. The expense
          was $5,568 (2002) and $7,268 (2001).

NOTE 10  COMMITMENTS AND CONTINGENCIES
--------------------------------------

           The Company is subject to laws and regulations relating to the
           protection of the environment. While it is not possible to quantify
           with certainty the potential impact of actions regarding
           environmental matters, in the opinion of management, compliance with
           the present environmental protection laws will not have a material
           adverse effect on the financial condition, competitive position, or
           capital expenditures of the Company.

          Able Oil Company is under contract to purchase #2 oil as follows:

<TABLE>
<CAPTION>
                                                                          GALLONS OPEN          OPEN DOLLAR
                                                                          ------------          -----------
                                                                           COMMITMENT          COMMITMENT AT
                                                                           ----------          -------------
           COMPANY                   PERIOD             TOTAL GALLONS      AT 9/30/02             9/30/02
           -------                   ------             -------------      ----------             -------
<S>                            <C>                         <C>              <C>             <C>
           Conectiv Energy     10/1/02 - 3/31/03             252,000          252,000             $181,616
           Conectiv Energy     11/1/02 - 3/31/03             210,000          210,000             $153,615
           Mieco, Inc.         11/1/02 - 2/28/03           1,050,000        1,050,000       See Note Below
           Motiva              11/1/02 - 3/31/03             420,000          420,000             $313,572
</TABLE>

                                       20
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 10  COMMITMENTS AND CONTINGENCIES (CONT'D)
-----------------------------------------------

          The agreement with Mieco, Inc. contains the following terms:

     1.   The oil has been delivered and is in storage at the Company's facility
          in Rockaway, New Jersey. Mieco, Inc. has filed a UCC for the product
          stored at the terminal.

     2.   The purchase price FOB delivered basis buyer's terminal shall be set
          when buyer (the Company) notifies Mieco that it will purchase in
          minimum 1,000 barrel increments. The delivery month NYMEX heating oil
          contract prior to its expiration will be used. The price plus the
          differential of USD $.0125 per gallon shall be the established price
          for this contract for all barrels delivered in accordance with the
          schedule set forth in the agreement.

          Able Propane, LLC is under contract with Keystone-Propane Service,
          Inc. to purchase propane gas for the period October 1, 2002 through
          March 31, 2003. The total is 210,000 gallons at $ .53 per gallon,
          total cost $111,300.

          In accordance with the agreement on the purchase of the property on
          Route 46, Rockaway, New Jersey by Able Energy Terminal, LLC, the
          purchaser shall commence after the closing, the investigation and
          remediation of the property and any hazardous substances emanating
          from the property in order to obtain a No Further Action letter from
          the New Jersey Department of Environmental Protection (NJDEP). The
          purchaser will also pursue recovery of all costs and damages related
          thereto in the lawsuit by the seller against a former tenant on the
          purchased property. Purchaser will assume all responsibility and
          direction for the lawsuit, subject to the sharing of any recoveries
          from the lawsuit with the seller, 50-50.

          The seller by reduction of its mortgage will pay costs related to the
          above up to $250,000 (see Note 6). A settlement has been achieved by
          the Company with regard to the lawsuit. The settlement provides for a
          lump sum payment of $397,500 from the defendants to the Company. In
          return, the defendants require a release from the Estate (the Seller)
          and a release and indemnification from the Company. The defendants
          will provide a release to Able Energy and the Estate. Pursuant to the
          original agreement, the Estate receives 50% of the settlement amount,
          net of attorney fees.

          This has been amended by an agreement dated November 5, 2001. The
          entire settlement, net of attorney fees, will be placed in an
          attorney's escrow account for payment of all investigation and
          remediation costs.

                                       21
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 10  COMMITMENTS AND CONTINGENCIES (CONT'D)
-----------------------------------------------

          The costs of the cleanup pursuant to the Agreement of Sale must be
          shared equally (50/50) by the seller and purchaser up to Seller's cap
          of $250,000. Seller's contribution to the cleanup is in the form of a
          reduction to the Note and not by direct payments. In the opinion of
          management, the Company will not sustain costs in this matter which
          will have a material adverse effect on its financial condition.

          Price Energy.Com, Inc., a subsidiary, has commenced suit against
          ThinkSpark Corporation on Consulting Services Agreement, dated June 2,
          2000. ThinkSpark was to provide services of professional quality
          performed by knowledgeable staff familiar with the operation of the
          software and its application and conforming to generally accepted data
          processing practices. ThinkSpark agreed that it could develop, deliver
          and install the system to be operational by mid-August 2000.
          ThinkSpark ceased work in mid-October 2000 and the project was not
          completed. Price Energy hired another firm which has completed the
          project. ThinkSpark admits the original estimate for the project was
          $266,000.

          Price Energy paid ThinkSpark $82,539 and is paying the new firm
          $75,600 which will complete the work.

          ThinkSpark has filed a counterclaim seeking payment of $283,100.62,
          which is the total amount of bills rendered. On January 11, 2002,
          Price Energy and ThinkSpark agreed to settle their dispute. Price
          Energy will pay ThinkSpark $30,000 and there will be mutual releases
          of all claims as well as dismissals of the pending actions in New
          Jersey and Texas. The liability as of September 30, 2002 has been paid
          in full.

          The Company in the normal course of business has been involved in
          several suits. Two suits have been settled out of court at agreeable
          terms, according to management. No suits are currently in litigation.

NOTE 11  OPERATING LEASE
------------------------

          Able Energy Terminal, LLC, has acquired the following lease on the
          property it purchased on Route 46 in Rockaway, New Jersey.

          The lease with Able Oil Company, a wholly owned subsidiary of Able
          Energy, Inc., has an expiration date of July 31, 2004. The lease
          provides for a monthly payment of $1,200 plus a one cent per gallon
          through put, as per a monthly rack meter reading.

          Estimated future rents are $14,400 per year, plus the one cent per
          gallon through put charges per the monthly rack meter readings.

                                       22

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 11  OPERATING LEASE (CONT'D)
---------------------------------

          The Company leased 9,800 square feet in the Rockaway Business Centre
          on Green Pond Road in Rockaway, New Jersey. The facility will be used
          as a call center and will combine the administrative operations in New
          Jersey in one facility. The lease has a term of five (5) years from
          August 1, 2000 through July 31, 2005.

          The rent for the first year is $7,145.83 per month and the second
          through fifth year is $7,431.67 per month, plus 20.5% of the
          building's annual operational costs and it's portion of utilities. The
          monthly rent, including Common Area Charges, as of October 2000 is
          $9,084 per month. The lease does not contain any option for renewal.
          The rent expense was $29,397 for the three months ended September 30,
          2002. The estimated future rents are as follows:

                  YEAR ENDED JUNE 30,
                  -------------------
                          2003                                  $ 110,000
                          2004-2006                               230,000
                                                                 --------
                                   Total                        $ 340,000
                                                                =========

          The following summarizes the month to month operating leases for the
          other subsidiaries:

             Able Oil Melbourne                 $500.00, per month
                                                Total  rent expense, $1,500
             Able Energy New York      $500.00, per month
                                                Total  rent expense, $1,500
NOTE 12  FRANCHISING
--------------------

          The Company sells franchises permitting the operation of a franchised
          business specializing in residential and commercial sales of fuel oil,
          diesel fuel, gasoline, propane and related services. The Company will
          provide training, advertising and use of Able credit for the purchase
          of product, among other things, as specified in the Agreement. The
          franchisee has an option to sell the business back to the Company
          after two (2) years of operations for a price calculated per the
          Agreement. The Company signed its first franchise agreement in
          September 2000. On June 29, 2001, PriceEnergy.Com franchising, LLC, a
          subsidiary, signed its first franchise agreement. The franchisee will
          operate a B-franchised business, using the proprietary marks and a
          license from PriceEnergy.Com, Inc. and will establish the presence of
          the franchisee's company on the PriceEnergy internet website. The
          franchisee will have the exclusive territory of Fairfield County,
          Connecticut as designated in the agreement. The franchisee paid the
          following amounts in July 2001:

                    1.   A non-refundable franchise fee of $25,000.
                    2.   An advertising deposit of $15,000 and a $5,000 escrow
                         deposit.

          The non-refundable fee of $25,000 has been recorded as Other Income in
          the period ended September 30, 2001. The advertising deposit was
          credited to advertising expense in the year ended June 30, 2002. The
          $5,000 Escrow Deposit was returned in September 2002.

                                       23
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 13  RELATED PARTY TRANSACTIONS
-----------------------------------

          $44,690 is due from the major Shareholder/Officer of the Company. This
          amount is evidenced by a Note bearing interest at a rate of 6% between
          the Shareholder and the Company. This Shareholder has loaned the
          Company $55,000, on May 10, 2002 evidenced by a Demand Note with
          interest at 6% per annum, which can be paid all or in part at any time
          without penalty.

          The following officers of this Company own stock in the subsidiary,
          PriceEnergy.Com, Inc., which they incorporated in November 1999.

                  Chief Executive Officer                     23.5%
                  President                                           3.6%

          No capital contributions have been made by these officers (See Notes 1
          and 8).

NOTE 14  EARNINGS PER SHARE
---------------------------

          The shares used in the computation of the Company's basic Earnings Per
          Common Share are as follows:

<TABLE>
<CAPTION>
                                                            SEPTEMBER 30,     SEPTEMBER 30,
                                                                2002              2001
                                                                ----              ----
<S>                                                           <C>               <C>
           Weighted Average of Common Shares Outstanding      2,003,831         2,000,298
           Dilutive Effect of:
               Employee Stock Options                                 -                 -
               Stock Warrants                                         -                 -
                                                              ---------         ---------

           Weighted Average Common Shares Outstanding         2,003,831         2,000,298
                                                              =========         =========
</TABLE>

          The dilutive potential common shares that were anti-dilutive at
          September 30, 2002 amounted to 47,306 Shares.

NOTE 15  STOCK OPTION PLANS
---------------------------

           The Company has stock option plans under which stock options may be
           issued to officers, key employees, and non-employee directors to
           purchase shares of the Company's authorized but unissued common
           stock. The Company also has a stock option plan under which stock
           options may be granted to employees and officers.

                                       24
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 15  STOCK OPTION PLANS
---------------------------

           Options granted currently expire no later than 3 to 5 years from the
           grant and have vesting periods from none to 25% at grant and 25% each
           anniversary.

<TABLE>
<CAPTION>
                                                                    OUTSTANDING OPTIONS
                                                                    -------------------
                                              NUMBER OF SHARES         EXERCISE PRICE         TERM
                                              ----------------         --------------         ----
<S>                                                 <C>                     <C>              <C>
                 January 6, 2000
                    Grants                          56,000                  $5.00            5 years
                    Exercises                            0

                 December 1, 2000
                    Grants                          48,090                  $3.25            3 years
                    Exercises                        1,250

                 December 21, 2000
                    Grants                          60,000                  $1.80            5 years
                    Exercises                            0

                    Grants                          23,000                  $2.25            5 years
                    Exercises                            0
</TABLE>

16       STOCK WARRANTS
-----------------------

          The Company has issued stock warrants as follows:

     1.   60,000 Common Stock Purchase Warrants at $4.81 per share, effective
          August 31, 2000, and expiring August 31, 2005, to Andrew Alexander
          Wise & Company in connection with an investment banking advisory
          agreement with the Company, dated July 1, 2000.

     2.   40,000 Common Stock Purchase Warrants at $4.00 per share, effective
          June 26, 2001 and expiring June 26, 2004, in connection with a
          $500,000 Note Payable (See Note 5). These warrantes have not been
          registered under the Securities Act of 1933.

     3.   100,000 Common Stock Purchase Warrants at $4.00 per share, effective
          September 13, 2002, and expiring September 12, 2004, in connection
          with a $750,000 Note Payable (see Note 5).

          The 200,000 warrants to purchase shares of common stock were
          outstanding during the third quarter of 2002 and were not included in
          the computation of diluted EPS as the warrants' have not been
          registered under the Securities Act of 1933.

                                       25
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2002 AND SEPTEMBER 30, 2002
                      ------------------------------------

NOTE 17  STOCK ISSUANCE
-----------------------

          During the quarter ended September 30, 2002, 6000 shares of Common
          Stock were issued to the directors for services rendered during the
          year 2001, and charged at the fair market value as Directors' Fees.
          The share price was $4.00 per share for a total Directors' Fees of
          $24,000.

NOTE 18  COMPENSATED ABSENCES
-----------------------------

          There has been no liability accrued for compensated absences; as in
          accordance with Company policy, all compensated absences, accrued
          vacation and sick payment must be used by December 31st. At September
          30, 2002, any amount for accrual of the above is not material and has
          not been computed.

NOTE 19  CASH FLOW INFORMATION
------------------------------

          The Directors received Common Stock as payment of Directors' Fees. No
          cash was received or paid.







                                       26
<PAGE>

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS

                       ABLE ENERGY, INC. AND SUBSIDIARIES

          Statements in this Quarterly Report on Form 10-Q concerning the
          Company's outlook or future economic performance, anticipated
          profitability, gross billings, expenses or other financial items, and
          statements concerning assumptions made or exceptions to any future
          events, conditions, performance or other matters are "forward looking
          statements," as that term is defined under the Federal Securities
          Laws. Forward-looking statements are subject to risks, uncertainties,
          and other factors that would cause actual results to differ materially
          from those stated in such statements. Such risks, and uncertainties
          and factors include, but are not limited to: (i) changes in external
          competitive market factors or trends in the Company's results of
          operation; (ii) unanticipated working capital or other cash
          requirements and (iii) changes in the Company's business strategy or
          an inability to execute its competitive factors that may prevent the
          Company from competing successfully in the marketplace.

          REVENUE RECOGNITION

          Sales of fuel and heating equipment are recognized at the time of
          delivery to the customer, and sales of equipment are recognized at the
          time of installation. Revenue from repairs and maintenance service is
          recognized upon completion of the service. Payments received from
          customers for heating equipment service contracts are deferred and
          amortized into income over the term of the respective service
          contracts, on a straight-line basis, which generally do not exceed one
          year.

          RESULTS OF OPERATIONS

          THREE MONTHS ENDED SEPTEMBER 30, 2002, COMPARED TO THE THREE MONTHS
          ENDED SEPTEMBER 30, 2001.

          The Company reported revenues of $6,233,339 for the three months ended
          September 30, 2002, an increase of 18.34% over the prior year's
          revenues for the same three-month period. This increase can be
          attributed primarily to the Company's continued aggressive sales
          activities, which resulted in a larger customer base as well as an
          increase in the sales of commercial diesel fuels and gasoline. In
          March of 2002, management instated a business plan to market and sell
          other liquid products, specifically gasoline and diesel fuel products,
          during the warmer months. In addition, the company increased its sales
          of new equipment and HVAC services by 44.21% for this quarter. These
          changes were initiated to help even out the seasonality of the
          Company's business when heating oil sales are generally down.
          Management has committed to a reasonable gross margin percentage to
          allow for profitability on the sale of these products.

          Gross profit margin, as a percentage of revenues, for the three months
          ended September 30, 2002, increased to 13.32% from 10.39%, an increase
          of $283,263 above the prior year's three months results. The increase
          in margin is primarily a result of the Company's new margin management
          policy, which was put into effect in September of 2001, and is
          designed to maximize margins, by product segment, on each of the
          products and services that it markets to the consumer. This program is
          designed to promote product pricing that is in line with the specific
          type of service provided.

          Selling, General, and Administrative expenses, as a percent of sales,
          decreased by 3.62% from 23.06% in the quarter ending September 30th
          2001 to 19.44% during the same period in 2002. The Company attributes
          this decrease to its continued commitment to controlling expenses,

<PAGE>

          insurance, telephone, and advertising. Management will continue to
          monitor the fiscal budget against actual results on an ongoing basis
          in an effort to further reduce SG&A as a percentage of sales.

          Operating loss for the three months ended September 30, 2002 was
          $678,419, a decrease of 29.74% under the Company's operating loss of
          $965,527 for the three months ended September 30, 2001. This decreased
          operating loss for the quarter was directly related to the increase in
          gross margins, as operating costs, in dollars, were similar to the
          prior year period.

          Net loss for the three months ended September 30, 2002 decreased by
          $221,183, or 23.26%, to $729,827 as compared to the same period for
          the previous year loss of $951,010. This net loss was the result of
          seasonal factors in the sale of heating oil, propane, and related
          products in the summer months. Due to the seasonal nature of the
          business, the 1st fiscal quarter typically experiences the lowest
          sales volume and net income of the four quarters for the Company.

          OPERATIONAL EFFICIENCIES

          The Company believes that it will continue to increase the utilization
          of existing personnel and equipment, thus reducing expenses and
          increasing profitability, within its current business configuration.

          During this past fiscal year, the Company began implementation of a
          new margin management program designed to increase profitability
          without sacrificing customer appeal. The Company believes that there
          is value to the products and services that it provides to its
          consumers in varying levels based upon the specific needs of the
          consumer and the products provided. This program is working and has
          been expanded to include equipment sales and services.

          The Company will begin service billing utilizing a methodology known
          as "Flat Rate Pricing", an approach similar to that used in the
          automobile repair field. Flat rate pricing will be introduced in
          stages with the first phase beginning in the 2nd fiscal quarter of the
          current year. This system will give sales and service personnel the
          ability to offer the customer an easy to understand, "package
          approach" to repairs and equipment installations with one or two line
          billings per invoice. This system will interface with the Company's
          automated dispatch communications program that was introduced last
          year. It is anticipated that this system will be fully implemented
          within one year.

          RECENTLY IMPLEMENTED TECHNOLOGICAL PROCEDURES

          The Company has established goals, which will be accomplished through
          the implementation of some modern technologies that are currently
          being installed into the Company's existing infrastructure.

          The Company will begin introducing additional customer service
          technology to its Rockaway call and administrative center during the
          second fiscal quarter of 2002/2003. Management believes that by
          providing enhancements to existing telephony hardware and in-house
          management, the Company's call center environment will be provided
          with the ability to respond to changing call patterns, both higher and
          lower, without the expense of clerical over-staffing to meet
          unrealized needs. New software will provide customers with the option
          of placing an order via a voice activated technology. This will enable
          customers who simply wish to refill their fuel tank, the opportunity
          to quickly place an order 24 hours a day without the help of a live
          customer service representative.

<PAGE>

          The Company is now beginning full implementation of the recently
          announced automated dispatch technology, which provides management
          with the ability to communicate with service technicians
          instantaneously. This system also is now performing billing functions
          at the customer's location as well as documenting payment data
          instantaneously. Additionally, management is now aware of the status
          of every on-duty worker and obtains real time reporting for stand-by,
          enroute, and service work time. This enables the Company to maximize
          scheduling opportunities and eliminating service technician down time.

          LIQUIDITY AND CAPITAL RESOURCES

          For the three months ended September 30, 2002, compared to the three
          months ended September 30, 2001, the Company's cash position increased
          by $155,876 from $524,140 to $680,016. For the year ended June 30,
          2002, cash was generated through collections of customer advance
          payments, and an increased loan from the bank. In the quarter ending
          September 30, 2002, the Company entered into an agreement and received
          a loan of $750,000 from a private company. The Company is in
          discussions with a financial institution to obtain a term loan and
          consolidate a large portion of its existing debt and also a working
          capital line of credit of $2.5 million. This will enable the Company
          to continue to grow while strengthening its infrastructures.

          SEASONALITY

          The Company's operations are subject to seasonal fluctuations, with a
          majority of the Company's business occurring in the late fall and
          winter months. Approximately 70% of the Company's revenues are earned
          and received from October through March, most of such revenues are
          derived from the sale of home heating products including propane gas
          and home heating oil. However the seasonality of the Company's
          business is offset, in part, by an increase in revenues from the sale
          of HVAC products and services, diesel and gasoline fuels during the
          spring and summer months, due to the increased use of automobiles and
          construction apparatus

          From May through September, Able Oil can experience considerable
          reduction of retail heating oil sales. Similarly, Able Propane can
          experience up to an 80% decrease in heating related propane sales
          during the months of April to September, this is offset somewhat by
          increased sales of propane gas used for pool heating, heating of
          domestic hot water in homes and fuel for outdoor cooking equipment.

          Over 90% of Able Melbourne's revenues are derived from the sale of
          diesel fuel for construction vehicles, and commercial and recreational
          sea-going vessels during Florida's fishing season, which begins in
          April and ends in November. Only a small percentage of Able
          Melbourne's revenues are derived from the sale of home heating fuel.
          Most of these sales occur from December through March, Florida's
          cooler months.

ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

              Not Applicable.

ITEM 4.   CONTROLS AND PROCEDURES

          As of September 30, 2002, an evaluation was performed under the super-
          vision and with the participation of the Company's management,
          including the Principal Executive Officer and the Principal Accounting
          Officer, of the effectiveness of the design and operation of the
          Company's disclosure controls and procedures. Based on that
          evaluation, the Company's manangement, including the Principal
          Executive Officer and the Principal Accounting Officer, concluded that
          the Company's disclosure controls and procedures were effective as of
          September 30, 2002. There have been no significant changes in the
          Company's internal controls or in other factors that could
          significantly affect internal controls subsequent to September 30,
          2002.
<PAGE>

                                     PART II
                                OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

       None.


ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

       We borrowed $750,000 from an unrelated company, KMA & Associates, LTD.
The mortgage and note are dated September 13, 2002. The term of the note is for
one (1) year. Payments of interest only on the outstanding principal balance
shall be paid monthly at a rate of 10%. The first payment was due on November 1,
2002 and on the first day of each month thereafter until October 1, 2003, when
the Note shall mature and all principal and accrued interest shall be due and
payable in full.

Prepayment Penalty - in the event borrower makes a voluntary principal
payment during the term of this note, borrower shall pay to the lender a
premium equal to three (3) monthly payments of interest on the note.  The
note is collateralized by a mortgage dated September 13, 2002 from Able
Energy Terminal, LLC, a wholly owned subsidiary, which is a second mortgage
on the property at 344 Route 46, Rockaway, NJ and also by all leases and
rents related to the property.  The lender has been issued a stock purchase
warrant for 100,000 shares at $4 per share.  The warrant has not been
registered under the Securities Act of 1933.  We granted the holder
piggy-back registration rights for the common stock underlying the warrant
on our next registration statement.  This warrant does not entitle the
holder to any of the rights of a stockholder of the Able.  Unless previously
exercised, the warrants will expire on September 13, 2004.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

       None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

       None.

ITEM 5.  OTHER INFORMATION

       None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

       (a)  Exhibits

       None.

       (b)  Reports on Form 8-K

       The Company did not file any reports on Form 8-K during the three months
ended September 30, 2002.

<PAGE>

                                   SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, on this 13th day of November 2002.


                                                    ABLE ENERGY, INC.


                                                    /s/ Timothy Harrington

                                                    Timothy Harrington, Chief
                                                    Executive Officer,
                                                    Secretary, and Chairman

                                                    /s/ Christopher P. Westad
                                                    Christopher P. Westad,
                                                    President, Chief Financial
                                                    Officer, and Director

<PAGE>

                                  CERTIFICATION

     I, Timothy Harrington, Chief Executive Officer, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of Able Energy, Inc.;

2.   Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3.   Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.   The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a)   designed such disclosure controls and procedures to ensure that
     material information relating to the registrant, including its consolidated
     subsidiaries, is made known to us by others within those entities,
     particularly during the period in which this quarterly report is being
     prepared;

     b)   evaluated the effectiveness of the registrant's disclosure controls
     and procedures as of a date within 90 days prior to the filing date of this
     quarterly report (the "Evaluation Date"); and

     c)   presented in this quarterly report our conclusions about the
     effectiveness of the disclosure controls and procedures based on our
     evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of registrant's board of directors (or persons performing the equivalent
functions):

     a)   all significant deficiencies in the design or operation of internal
     controls which could adversely affect the registrant's ability to record,
     process, summarize and report financial data and have identified for the
     registrant's auditors any material weaknesses in internal controls; and

     b)   any fraud, whether or not material, that involves management or other
     employees who have a significant role in the registrant's internal
     controls; and

6.   The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

November 13, 2002

/s/ Timothy Harrington
Timothy Harrington
Chief Executive Officer

<PAGE>

                                  CERTIFICATION

     I, Christopher P. Westad, Chief Financial Officer, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of Able Energy, Inc.;

2.   Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3.   Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.   The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a)   designed such disclosure controls and procedures to ensure that
     material information relating to the registrant, including its consolidated
     subsidiaries, is made known to us by others within those entities,
     particularly during the period in which this quarterly report is being
     prepared;

     b)   evaluated the effectiveness of the registrant's disclosure controls
     and procedures as of a date within 90 days prior to the filing date of this
     quarterly report (the "Evaluation Date"); and

     c)   presented in this quarterly report our conclusions about the
     effectiveness of the disclosure controls and procedures based on our
     evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of registrant's board of directors (or persons performing the equivalent
functions):

     a)   all significant deficiencies in the design or operation of internal
     controls which could adversely affect the registrant's ability to record,
     process, summarize and report financial data and have identified for the
     registrant's auditors any material weaknesses in internal controls; and

     b)   any fraud, whether or not material, that involves management or other
     employees who have a significant role in the registrant's internal
     controls; and

6.   The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

November 13, 2002

/s/ Christopher P. Westad
Christopher P. Westad
Chief Financial Officer